This summary is based on the second quarter fiscal 2008 earnings call conducted by The Dress Barn Inc. (DBRN) on February 27, 2008.

Management:

- President, Chief Executive Officer & Director: David R. Jaffe
- Chief Financial Officer & Senior Vice President: Armand Correia
- Chief Merchandising Officer, Dress Barn Stores and Maurices Stores: Keith Fulcher
- Chief Merchandising Officer, Dress Barn Stores and Maurices Stores: Lisa Rhodes

Key Investors Issues

-Net sales were up 2% to $345.6 million from $340.3 million in the prior year.
- Earnings decreased 56.5% to $7.4 million or 12 cents per share from $17 million or 24 cents in the year ago period.
- Cash and marketable securities increased to $225 million.

Half Year Highlights:

- Net sales increased to $709.3 million an increase of 2% over $698.8 million from 2006.
- Net earnings were $27 million or 42 cents per share, down 39.2% from $44.4 million or 64 cents a share from the prior year.
- Operating margins as a percent of sales were 5.6% compared to 9.6% in 2006.

Second Quarter Highlights

Total net sales increased 2% to $345.6 million from $340.3 million in the prior year while comparable store sales decreased 4% compared to last year’s 5% increase.

- By brand, stores net sales decreased overall 4% to $204.1 million compared to last year’s $213.1 million while comparable store sales decreased 7% compared to last year’s 5% increase.
- By region Texas and the Gulf states posted the better sales results while the Southeast including Florida and the West Coast had the weaker results.
- Stores total sales transactions decreased 1% reflective of the weak consumer traffic and average unit retail decreased 6.5% primarily due to higher markdowns while units per transaction actually increased 2.5%.

Net sales for Maurices increased a strong 11% to $141.5 million compared to $127.2 million last year, driven by new store growth and a comparable store sales increase of 2% on top of last year’s 4% increase.

- At Maurices comparable stores increased in all the regions with the Midwest leading the way with average unit retail increasing 5.5% while units per transaction increased 2% netting a very strong 7.5% increase in average dollar sales.
- Total net earnings decreased 56.5% to $7.4 million or 12 cents per share from $17 million or 24 cents in the year ago period.
- Operating income decreased to $8.5 million compared to last year’s $23 million and as a percent of sales came in at 2.5% compared to last year’s 6.8%.

By brand, the stores posted an operating loss of $4.4 million from $10.6 million in 2006 for 5% of sales due to a 510 basis point decline in gross profit from increased markdowns in order to reduce inventory levels.

- Within the gross profit of the 510 basis points decrease 190 basis points were due to de-leverage on buy in occupancy costs and the remaining 320 basis point decrease was in merchandise margin.
- The remaining operating margin variance was 210 basis points from the de-leverage impact of various SG&A expenses.
- Maurices’ operating income was a solid $13 million compared to $12.5 million last year and as a percent of sales was 9.2% down from 9.8% posted last year, due to the 2% comparable store sales increase which was below the tipping point for SG&A leverage.

Cash and marketable securities increased to $225 million, while total inventories increased 2% to $161 million primarily due to Maurices’ store growth.

- By brand, Dress Barn stores’ total inventory at cost was $107.7 million down 2.5% versus last years $110.3 million despite an increase of 2% in net store growth from last year.
- By tightly managing inventories average store inventories at cost was down 4% while inventory per square foot was also down 5.5%.
- For Maurices total inventory at cost came in at $53.6 million an increase of 12.5% which is supported by the net store growth increase of 13.5% year-over-year.

Operational Insights:

- The firm’s customer has maintained her cautious approach to apparel spending savoring merchandise on promotion in particular.
- As a result the firm continues to take relatively deep but necessary markdowns to get inventories in shape for the spring season.
- It is maintaining the revised plan which adequately reflects this difficult environment as the Maurices customer who represents a younger demographic meanwhile continues to shop and numerous merchandising and marketing initiatives have performed well.
- The firm continues to search for strategic acquisitions and has a Board approval for $100 million stock buy back though no purchases have been made yet it is building cash for potential acquisitions.

Product Highlights:

- The firm is starting to sell more color in addition to black and white. Solid basics are selling well out of the box.
- It is also getting good reads in new trapeze and baby doll shapes with fashion knits and sweaters performing well.
- The casual and career jacket business continues to be strong and the firm is pleased with the results of the annual spring suit event.
- Jewelry and accessories which usually perform well during a weak economy are relatively strong.